Texas Sen. Kay Bailey Hutchison today announced her support for a $3.4 trillion deficit reduction plan put together by the bipartisan “Gang of Six” senators.

Sen. Kay Bailey Hutchison (Sarah Tung/Hearst Newspapers)

The plan, which would whittle away at the deficit over 10 years, is the largest package of deficit reduction with bipartisan report and concessions by both sides. About $1 trillion of the total $3.4 trillion deficit reduction plan would come from new revenue, while the remainder would come from entitlement reform and spending cuts by government agencies.

“It contains significant cuts in spending, entitlement reform, ends the Alternative Minimum Tax, and it will spur the economy and help create jobs,” Hutchison, R-Dallas, said in a statement. “This plan provides a concrete way in which we can reduce the deficit now and it ensures we have a long-term plan, with benchmarks, that will bring down the national debt.”

Hutchison’s fellow Texan Sen. John Cornyn, R-San Antonio, said simply in an emailed statement that he is carefully reviewing all proposals.

President Obama and leading deficit hawks praised the proposal. President Obama called the plan a “very significant step” toward solving the debt crisis.

Pete Peterson, former U.S. Secretary of Commerce who has long been an advocate of bipartisan deficit reduction, also threw his support behind the measure today.

“The bipartisan group of senators has demonstrated remarkable leadership, courage and determination in developing a comprehensive package which includes spending cuts and revenue reforms to address our structural deficits,” he said in a statement. “These six senators have done what we need all of our elected leaders to do: come together on a comprehensive bipartisan plan that addresses America’s long-term deficits in a big way.”